A Chinese integrated hog-and-feed company plans to take over a large U.S. swine firm operating in several states.
AgFeed Industries, based in Nanjang, China, operates five feed manufacturing plants and about 30 hog farms, but is incorporated as a publicly traded company in the United States.
The company plans to buy M2P2, an Ames, Iowa-based firm, for about $16 million, according to a July 20 filing with the U.S. Securities and Exchange Commission.
M2P2, formed in 2003 by a merger of seven smaller companies, produces about 1.3 million hogs a year at its facilities in Colorado, Oklahoma, North Carolina and Iowa.
The two firms entered into a joint venture in 2009 aimed at modernizing Chinese hog production by emulating Western systems.
-- Mateusz Perkowski